Google, OpenAI, and Perplexity Offer Free Subscriptions to Capture India's AI Market

Deep News
Oct 31

Global AI giants are waging a fierce battle for users in India, with free premium subscriptions emerging as their primary weapon.

The latest major development comes from Alphabet (GOOG, GOOGL). The company announced on Thursday a partnership with Reliance Intelligence, a joint venture between Reliance Industries and Meta, to provide its Gemini AI service for free to over 500 million users of India's largest telecom operator, Reliance Jio. This move signals a sharp escalation in India's AI market competition.

Prior to this, Alphabet's competitors had already made their moves. Earlier this week, OpenAI announced it would offer Indian users free access to its ChatGPT Go subscription for one year, available to both new and existing users. Meanwhile, AI search firm Perplexity has partnered with India's second-largest telecom operator, Bharti Airtel, to provide complimentary subscriptions.

This wave of aggressive free offerings underscores India's strategic importance for global AI companies. By partnering with the country's two largest telecom operators, these tech firms have secured direct access to massive user bases, marking the full-scale launch of India's AI user acquisition war.

**Alphabet Teams Up with Jio for 500 Million Users** Under the agreement between Alphabet and Reliance Intelligence, Jio customers will receive 18 months of free access to Google AI Pro. The package includes advanced features like the Gemini 2.5 Pro model, expanded usage of NotebookLM for learning and research, and 2TB of cloud storage—valued at ₹35,100 (~$396) per user.

The rollout will occur in phases, initially targeting Jio's unlimited 5G subscribers aged 18–25 before expanding to all users. Reliance Industries Chairman Mukesh Ambani stated the goal is to transform India into an "AI-powered nation" through strategic partnerships like this one.

Alphabet CEO Sundar Pichai remarked: *"I’m excited about how this collaboration will help democratize AI across India."*

**Competitors Move First** Before Alphabet's announcement, rivals had already taken action. In July, Bharti Airtel partnered with Perplexity to offer its 360 million customers free Perplexity Pro subscriptions—a service priced at $200/year globally. The duo launched an intensive social media campaign featuring Indian influencers to promote the AI tool.

Meanwhile, OpenAI revealed on October 28 that starting November 4, new Indian users would gain free access to ChatGPT Go for a full year. Launched in August as OpenAI's most affordable paid tier (₹399/year, under $5), the Go plan has already doubled India's paying user base. As OpenAI's second-largest market, the company is rapidly expanding locally and plans to build a 1-gigawatt data center in India.

**Why India?** For global tech firms aiming to broaden their digital reach, partnerships with Jio and Airtel provide instant access to India's vast user pool. The country's massive digital population makes it an unmissable battleground.

India ranks among the top global markets for social platforms: - Facebook: 350+ million users - Instagram: 413.8 million - YouTube: 467+ million - WhatsApp: Over 500 million

Additionally, India's youthful demographics are highly attractive. A BCG report estimates 377 million Gen Z Indians currently drive $860 billion in consumer spending—projected to reach $2 trillion by 2035. This combination of scale and growth potential solidifies India's position as the epicenter for global digital services and generative AI competition.

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